Mindtree shares up over 3% post earnings, acquisitions

Mumbai, Jul 17 (PTI) : Shares of Mindtree rose by over 3 per cent today after the IT firm posted 6.8 per cent jump in net profit for the June quarter of this fiscal and expressed confidence that it would beat Nasscom’s revenue growth target for the year.

The stock ended the day with a gain of 3.26 per cent at Rs 1,268.75 on the BSE. During the day, it went up by 4.66 per cent to Rs 1,286.05.

On the NSE, shares of the company climbed 3.43 per cent to Rs 1,267.60 at close.

Mindtree yesterday announced 6.8 per cent increase in net profit at Rs 138.2 crore in the first quarter.

The Bengaluru-based firm, which is witnessing strong traction in digital services, also announced that it will acquire two companies — Relational Solutions and Bluefin Solutions — for over Rs 483 crore.

The company’s net profit stood at Rs 129.4 crore in April-June 2014.

Mindtree’s revenues grew 16.3 per cent to Rs 981.6 crore in the quarter under review from Rs 843.5 crore in the year-ago period.

“There is a strong demand story, especially in digital. Both the US and Europe are doing extremely well. We are confident of beating Nasscom’s FY16 target of 14-16 per cent growth,” Mindtree CEO and Managing Director Krishnakumar Natarajan said.